How much does it cost to build each government housing unit?

According to Tejaratnews, the custodian of the housing sector has recently announced the amount of housing construction facilities in the plan to build one million housing units per year, the amount brought by the applicants, as well as the loan coverage percentage of the cost of these units, which is an important question. The cost of building public housing is high.

Yesterday, the Ministry of Roads and Urban Development announced that the housing construction loan for the construction of one million housing units in Tehran is 450 million Tomans, and announced that about 80% of the loans will be covered in the construction costs of these units.

According to the housing trustee, the construction loan amount in the construction plan of one million housing units has been calculated and announced that this figure, according to estimates, covers about 80% of the cost of construction of housing units in this project.

Meanwhile, according to the Ministry of Roads and Urban Development, the initial contribution of the applicants for these units is equal to 40 million Tomans for people in income deciles four and above, and equal to 20 million Tomans for income deciles one to three, ie one-half of the initial income of income deciles four and later. .

In a situation where the housing trustee has announced a loan of 450 million Tomans, it is supposed to cover about 80% of the construction cost of the units of the construction plan of one million housing units per year with a simple calculation of the cost of construction of these units without taking into account the cost of land. It is considered that it is around 600 million Tomans per unit.

Since the housing trustee had previously announced the area of ​​these units as gross and an average of 100 square meters, estimates indicate that the government has considered the cost of construction of these units to be an average of six million tomans per square meter.

Now, the figures related to the cost of housing construction in the market of ordinary and non-governmental construction companies narrate higher numbers than the current cost of construction per square meter of housing (excluding land costs). As the builders say, currently the cost of building each square meter of housing without taking into account the price of land in ordinary construction is about 10 million tomans, and therefore the cost of building a typical unit with desirable building standards with an area of ​​100 square meters is estimated at about one billion tomans.

With this in mind, if the government bears the equivalent of half the cost of building such a unit by paying a facility of 450 million Tomans, the remaining 50% of the share must be provided by the applicant and brought from his place. This difference raises a fundamental question that even if the cost of construction is assumed to remain constant and does not increase, what is the share of the initial cost of 20 million Tomans intended for applicants from one to three deciles to the cost of construction of these units? And will these applicants continue to have difficulty completing their application?

Source: the world of economy